Global equity markets are extending losses as investor confidence in the artificial intelligence trade continues to erode, according to Deutsche Bank’s Early Morning Reid report. The S&P 500 closed down 0.51 percent with futures indicating additional weakness ahead of the opening bell. Asian markets bore the brunt of the selloff, with Japan’s Nikkei, China’s CSI 300, and Hong Kong’s Hang Seng all posting sharp declines overnight.
The broad-based retreat signals growing skepticism about elevated valuations in technology stocks that have been driven higher by AI enthusiasm over recent months. The weakness is spreading across major indices globally, suggesting this may not be isolated profit-taking but rather a fundamental reassessment of AI-related growth expectations. Traders are now watching whether US markets will stabilize or accelerate the downturn when Wall Street opens.
FXnCO Insight
Risk-off sentiment is dominating across asset classes—consider reducing exposure to high-beta tech positions and monitoring volatility indicators for potential entry points once selling pressure stabilizes.
Source: FXStreet